KVISTGAARD, Denmark, January 11, 2013 - Bavarian Nordic A/S (OMX: BAVA) today
announced that it will consolidate its manufacturing activities in Kvistgaard,
Denmark with an aim to optimize productivity and profitability. As part of this
consolidation, the company will prepare the Kvistgaard facility for the future
commercial production of its prostate cancer vaccine, PROSTVAC® and also
transfer its production of clinical trial material to the facility.
Consequently, the company will close its operations in Berlin, Germany where it
has been producing clinical trial material for its MVA-BN® based vaccine
candidates.

During 2012, Bavarian Nordic has steadily improved the efficiency in the
manufacturing of IMVAMUNE® smallpox vaccine at its commercial-scale facility in
Kvistgaard. Further work is ongoing to improve the manufacturing process and the
productivity, thus seeking to further improve the profitability of the current
and future expected contracts with the U.S. Government to manufacture and
deliver IMVAMUNE®.

To fully benefit from the in-house expertise in poxvirus-based vaccine
manufacturing as well as to optimize the use of the Kvistgaard facility,
Bavarian Nordic has decided to prepare the facility for the future commercial
production of PROSTVAC® as well as to move its production of clinical trial
material for the company's MVA-BN®-based development projects This allows
Bavarian Nordic for a more flexible manufacturing approach and reduces
dependence from subcontractors, thus providing the company full control of pre-
launch activities for PROSTVAC®. At the Kvistgaard facility, functions to
support the production development of PROSTVAC® are already in place and thus
the preparatory work requires only moderate investments.

The above does not affect the company's expectations for the 2012 full year
results.

Asger Aamund
Chairman of the Board

Contact
Anders Hedegaard, President & CEO. Phone +45 23 20 30 64

About Bavarian Nordic
Bavarian Nordic is a vaccine-focused biotechnology company developing and
producing novel vaccines for the treatment and prevention of life-threatening
diseases with a large unmet medical need. The company's pipeline targets cancer
and infectious diseases, and includes ten development programs. In oncology, the
company's lead program is PROSTVAC®, a therapeutic vaccine candidate for
advanced prostate cancer that is the subject of an ongoing pivotal Phase 3 trial
and is being developed under a collaboration agreement with the National Cancer
Institute. In clinical Phase 1 and Phase 2 trials, PROSTVAC® has been tested in
nearly 600 patients. In infectious diseases, the company's lead program is
IMVAMUNE®, a non-replicating smallpox vaccine candidate that is being developed
and supplied for emergency use to the U.S. Strategic National Stockpile under a
contract with the U.S. Government. For more information, visit www.bavarian-
nordic.com

Forward-looking statements
This announcement includes "forward-looking statements" that involve risks,
uncertainties and other factors, many of which are outside of our control that
could cause actual results to differ materially from the results discussed in
the forward-looking statements. Forward-looking statements include statements
concerning our plans, objectives, goals, future events, performance and/or other
information that is not historical information. We undertake no obligation to
publicly update or revise forward-looking statements to reflect subsequent
events or circumstances after the date made, except as required by law.